Koch Industries to acquire Molex for total equity value of approx $7.2 billion

Molex, a global electronic components company, will be acquired by Koch Industries for 38.50 per share in cash, the company announced Monday.

The total equity value of the transaction will be approximately $7.2 billion. The agreement has been approved by both the Molex and the Koch Industries boards of directors.

At the close of the transaction, Molex will become a standalone subsidiary of Koch Industries and will continue to be operated by the company’s current management team. Molex will retain the company name as well as its headquarters in Lisle, Illinois.

“After 75 years this was a difficult decision, but our board of directors and our family believe that this transaction, which follows a diligent and thorough review process by the board, provides outstanding benefits for all our stakeholders,” said Fred Krehbiel, co-chairman of the Molex board.

Molex Logo

Krehbiel further said the transaction will benefit its shareholders as they will receive a significant premium and compelling value for their holdings. The transaction is also expected to provide substantial opportunities for its worldwide employees, Krehbiel added.

Charles Koch, chairman and chief executive officer of Koch Industries, considers Molex “an exciting acquisition that matches up well with our culture and our core capabilities. It also provides a significant new platform for growth.

“Molex has become a global leader by focusing on product innovation and value creation, driven by its talented leadership and employees,” Koch said. “We look forward to jointly applying the capabilities of our two companies to help take both to the next level.”

The transaction is expected to be closed in the calendar year-end subject to customary closing conditions, including receipt of shareholder and regulatory approvals.

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